The Pakistan Credit Rating Agency (PACRA) has maintained the long –term and short term entity ratings of First Women Bank Limited at AA (Double A) and A1+ (A One Plus), respectively. These ratings, which factors in explicit GoP support, denote a very low expectations of credit risk emanating from a very strong capacity for timely payment of financial commitments and are applicable to the senior unsecured creditors (depositors) of the bank. At the same time, the standalone ratings of BBB+/A2 are also maintained.

The standalone ratings reflect by and large maintained risk profile with continuing low deployment of resources into advances. Despite a notable increase, the relatively modest size of the equity base would continue to limit the bank’s risk absorption capacity. However, in a peer setting and given the increasingly competitive environment, the bank’s operations continue to face inherent constraints. The bank’s growth and emergence as a meaningful participant in the banking sector is dependent on the injection of fresh equity, upgradation of information technology infrastructure, strengthening of risk management systems and human resource development.

The GoP’s direct and indirect stake in the bank’s equity has fallen below 51% due to disinvestment in stakeholder banks. However, the Ministry of Finance (MoF) has conveyed the written assurance that action is in hand to inject additional equity for maintaining the public sector status of the bank and has also confirmed that applicability of the Banks (Nationalization) Act, 1974 has not been withdrawn in respect of FWBL. Based on this assurance, PACRA is maintaining the bank’s ratings of AA/A1+.

About the bank : First Women Bank Ltd. (FWBL) was established in 1989 with a vision to be the leading bank for women, catering to the special economic needs of women both in urban & rural areas of Pakistan and enabling them to participate more actively in the economic process. The Board of Directors comprises seven members including the presidents of all the big five banks.
The change of management under the leadership of the new President in 2001 provided the bank with the much-needed strategic focus and ongoing formulation of effective risk management systems necessary for viable operations in addition to strengthening the staff support. The management is assiduously steering the bank towards a healthy financial condition, while redressing the operational weaknesses.

 AA – Very High Credit Quality

‘AA’ ratings denote a very low expectation of credit risk. The capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

 A1+ - Obligations supported by the highest capacity for timely repayment.